Unemployment – Investing in Job Portals & Recruitment

Employment agency shares: You should know that

Not only as an employee can you make a profit from unemployment, but also as an investor. There are many recruiters listed on the stock exchanges, the table below lists the top ten. But a recruiter is not just a recruiter. We explain the differences and what is important below:

There are recruitment agencies three different business models. The first is the Placement of workers for a fee. Here, relatively inexpensive newcomers such as ZipRecruiter, who rely on AI placement, are competing with intermediaries specializing in specialists and executives, such as Korn Ferry. Create a second line of business job ads, which, for example, the Japanese Recruit Holding offers with its “indeed” platform. However, this business area is highly competitive and so market shifts can quickly occur, which you as an investor should keep in mind. The third type of companies in the job placement market are temporary employment agencies like Amadeus FiRE. Although they posted good figures in 2021, they could themselves come under pressure with their previous concept due to the tightened labor market situation. However, the German company, like the Dutch industry heavyweight Randstad, which in turn also owns the job portal “Monster”, is not only designed for temporary work, but also offers personnel placement and interim management. This means that these companies could also quickly adjust the focus of their business models.

As an investor, before buying shares, you should sound out the business areas of the individual recruitment agencies and examine them based on developments on the labor market. Do not necessarily be put off by slumps in prices caused by the economy or interest rate policy. Low prices can often be a good time to get started, and the demographic development speaks in favor of permanent placement as an important future market. See our article Buying Stocks for more information on trading stocks.

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